http://www.businessinsider.com/how-everything-could-go-wrong-for-uber-2015-2?op=1
Uber is the most valuable private tech company in the world right now. In January, the company worked out a $1.6 billion convertible-debt round with Goldman Sachs, bringing the total amount of money Uber has raised since its 2010 launch to more than $4 billion and valuing the company at more than $41 billion. But Uber isn't infallible. The company has competitors, it's working through regulatory battles, and it relies on independent contractors. Is Uber revolutionizing the transportation industry? It is easier to become an Uber driver than it is to be a taxi driver. Taxi drivers have to pay a large sum of money to get a medallion and are difficult to get. Uber may be the future, but will it last? In the article it mentions the nightmare scenarios that Uber has been facing recently. Uber has faced protests by its own drivers claiming they are barely making minimum wage. Also, Uber drivers are a major liability for this multi-billion dollar company. The company promises to do detailed back ground checks on their drivers, but there has been many cases of assault as of recent and even vehicular manslaughter. The government is cracking down on the regulatory loopholes that have helped Uber operate. They are also being crackdown on abroad as well. These are just some of the issues Uber has faced, but another one could be Google's self-driving car. Google is actively seeking its own car hailing technology. Will this be fatal to Uber in the long run?
5 comments:
With the recent regulatory problems with Ubber and the drivers protesting, Ubber will loose a lot of customers going back to the traditional taxi service. Especially with taxi's adopting new technological advances seen in Ubber and Lyft if Ubber starts letting drivers accept tips they can see a significant decline in their customer base.
The regulatory problems are a really big problem in the system. I really think that companies like Uber will be destroyed by competition from the goverment, rather than from competition between the companies in the industry.
I think for Uber, Lyft and other companies to continue to thrive, they need to offer more than they are. Having an app to order a driver is nice, but it is only a matter of time before other taxi services catch up. As with any major company, these new taxi services will have negative publicity, but more innovation in the future is needed to maintain what these upstarts have begun.
Going off what Brian said, I'm actually surprised that normal taxi cabs haven't "gone online" and used apps to order drivers yet (that I know of). I wonder if these ordering-drivers apps, like Uber and Lyft, will keep up with the market trends, or just fade away. I know that they have worked towards making experiences better, for both drivers and riders, in that both parties can leave comments and ratings about their experience. This is probably attractive to many consumers, given that you can't pick and choose your taxi driver, but you can for other driving services.
Uber also needs to improve their process of background checking before hiring someone or they'll start losing customers as has been in the case in India where it is facing a lawsuit due to not conducting a proper background check on a driver who later sexually assaulted a female passenger.
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